At 31 March 2014, a company had oil in hand to be used for heating costing $14,070 and an unpaid heating oil bill for $2,800.
At 31 March 2015, the heating oil in hand was $11,256, and there was an outstanding heating oil bill of $3,360.
Payment made for heating oil during the year ended 31 March 2015 totalled $12,345.
Based on these figures, what amount should appear in the company's statement of profit or loss and other comprehensive income for heating oil for the year?
Suggested solutions
Oil Account
| Debit | Credit | ||
| Opening Balance | 14,070 | Adjustment | 2,814 |
| Closing Balance | 11,256 |
Payable (Accrual) Account
| Debit | Credit | ||
| - | - | Opening Balance | 2,800 |
| - | - | Adjustment | 560 |
| - | - | Closing Balance | 3,360 |
Heating Oil Expense Account
| Debit | Credit | ||
| Cash Paid | 12,345 | ||
| Adjustment Oil account | 2,814 | ||
| Adjustment Accrual account | 560 | ||
| Total Heating Oil expenses | 15,719 |
To do the same topic again in ACCA F3 Prepayment and Accrual 2
To do another topic in ACCA F3
2015 ACCA F3 Prepayment and Accrual